We study interaction effects between intra-firm conflicts and interfirm competition on a duopolistic market with seller … firms employing one or more agents and implementing tournament incentives. We show that inter-firm competition leads to … ; strategic competition …

We study strategic interfirm competition allowing for internal conflicts in each seller firm. Intrafirm conflicts are …, interfirm competition leads to a higher revenue share for the agents, higher equilibrium effort levels and higher agent utility … employed by the competing firms. -- agency theory ; strategic interfirm competition ; revenue sharing …

Tirole (1984) to characterize the different equilibria. We find that outsourcing generally softens competition in the final …